The Central Bank of Nigeria (CBN) has revoked the license of Heritage Bank Plc with immediate effect, citing a breach of Section 12 (1) of the Banking and Other Financial Institutions Act (BOFIA), 2020. Hakama Sidi Ali, Acting Director of Corporate Communication at the CBN, announced this decision on Monday, stating that the bank’s inability to improve its financial performance posed a threat to financial stability.
Despite engaging with the bank and prescribing various supervisory measures to address its decline, the CBN found that Heritage Bank continued to suffer with no reasonable prospects of recovery. Consequently, the revocation of the license was deemed necessary to strengthen public confidence in the banking system and preserve the soundness of the financial system.
Mrs. Halima assured the public that the Nigerian financial system remains stable, emphasizing the CBN’s commitment to taking necessary steps to ensure its safety and soundness. The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank in accordance with Section 12 (2) of BOFIA, 2020.